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Real-Time news about Peninsular (London Stock Exchange): 0 recent articles
|aleoap: To be honest it's a poorly written article. They mention production 'from 18,000 ounces a year to somewhere in the region of 24,000 ounces this year'
Yet we know in July, August and September 2012 they were producing 2000oz per month - equivalent of 24k.
Then we have 'That all adds up to an overall potential resource of nearly 380,000 ounces.'.
Well we know overall JORC is 577,200oz.
But yes, the comments at the bottom are strange..
'The company's current Aim rating rules out equity funding just now for a Northern Licence Area campaign, according to Watson. That is why a separate NLA float is one possibility under review.
And on the chances of a Peninsular de-listing, Watson comments "all things are possible". It'll be an interesting year.'
It's not rocket science to see that IF they can get the brand new 2mtpa plant working as it should at Raub then 50k pa is possible. If done then the subsequent rerating of its aim share price will allow them to pursue the NLA. The Raub resource has not had an update since the middle of 2008! The value here is in Raub, NLA has disappointed so far imo.|
|timgw: aleoap - I have had a good look at the annual report and accounts but can't see an answer to your question! Results look generally quite OK though with a significantly improved profit. Pity about the share price.|
|timgw: Hello, I'm new here. I have just a few thousand shares in this outfit curently at a 50% loss! The fundamentals look rather better than the share price which is perhaps a good sign. I must do some arithmetic and see what percentage of the shares are actually available for regular trading. (edit: shareholders with more than 3% account for 60% of share capital according to companies website) With companies this size volume seems to be a stronger driver of a share price.
I'm more worried about dodgy deals with HMB this week!!|
Peninsular Gold Puts Its Troubles At Raub Behind It As Profits And Production Start To Rise
By Sally White
Peninsular Gold has moved up a few leagues. The Aim-traded Malaysian gold miner has recently announced that production numbers are once again on the up at the Raub gold mine in Pahang.
Location of Raub
What's more, the company has also recently announced a good-looking maiden JORC resource at the Tersang project 18 kilometres to the north and a new discovery nearby at Kekabu.
Such real achievements have taken the share price into recovery territory not back to the heady days of early 2010 when Peninsular broke through the 70p barrier on maiden profits, but still rise from the 13p low to 19.25p.
And there are plenty of indications that the full story at Tersang, and indeed for Peninsular's territory as a whole, is far from told yet.
"The recent results of the regional exploration of our highly prospective grounds are very exciting, especially with the recent discovery at Kekabu of a new mineralised intrusive similar in size and close to Tersang." says non-executive director Dr. Yves Cheze, who also runs his own geological consulting company in Malaysia.
Good news has also come on another front. The years-long legal battle between the company and activists who were trying to halt the use of cyanide at Raub is now at an end. The country's senior judiciary, the Federal Court of Malaysia has now backed the lower courts, dismissed the case and awarded costs to the company. So, a distraction, which began in 2008 and which was a potential stain on its reputation, has gone.
In fact, the latest up-date from Peninsular shows good improvement in production at Raub, which is now recovering from recent operational problems. The trouble was caused by unexpected characteristics in the range of material that needs to be processed, particularly the clayey oxide material.
Finance director Patrick Watson takes up the story. "A technical review is now being undertaken of the entire circuit from the crushing and milling stages through the revised feed/slurry area to ensure the whole pre-CIL [carbon-in-leach] process will cope effectively with the full range of in-situ materials", he says.
But Peninsular has already managed to improve production from the 3,926 ounces delivered in the fourth quarter of 2011 to 5,321 in the first quarter of 2012. And the improvements continued into the spring.
In April, monthly production hit a record rate of 2,550 ounces. "This result reflects both the higher grade of material being processed from the in-situ oxide materials and also the improved recovery being achieved", says Patrick.
He also emphasises that the improved figures show the benefits of hiring experienced staff with good regional knowledge for key roles in mining, geology and metallurgy. "This has brought in more extensive experience of the local conditions and ore types being mined and processed," he says.
However, he also cautions that the production numbers for May and June will show a dip because maintenance at one of the mills resulted in reduced tonnage throughput.
It is while this maintenance is being carried out, and while the CIL circuit is being commissioned, that Peninsular is also taking the opportunity to make a technical review that will look for greater efficiency. Already, further improvements are expected as the benefits of revised plant feed and slurrying processes are realised.
Meanwhile, the company continues to explore the Raub area. Recent drilling has shown that in the envelope of the old underground mining operations, large sections remain untouched.
"The recent encouraging results will support the new detailed geo-structural review of the whole Raub deposit designed to define the best deep drilling targets", says Dr. Cheze.
Over at Tersang, the new JORC resource stands at 5.2 million tonnes of ore grading 0.71 grams per tonne gold for 120,000 ounces of gold, in oxidised material.
But there are considerable grounds for believing that there is much more at Tersang. Significant zones inside the felsite remain to be drilled and the new JORC statement is the result of a relatively limited first phase of approximately 10,900 metres of drilling.
The indicated section of the resource is located exclusively in Tersang South. The other half of the deposit, Tersang North, requires further drilling both to upgrade the current inferred resources and potentially to identify additional resources. And so, Peninsular Gold is reviewing all the Tersang exploration results and preparing an updated 3D geological model with a view to planning its next move.
At Kekabu, the new discovery near to Tersang, the company has uncovered a mineralised body similar to Tersang in nature. The gold is apparently hosted in a largely developed felsite that is visible over a 2,000 metre by 500 metre area. Fieldwork is ongoing and a 100 metre by 25 metre soil sample survey over a 1,700 metre by 1,000 metre area that includes the intrusive is underway.
Peninsular is far from realising its full profit capability yet. As the company has announced, production been limited by teething problems with newly installed equipment, but all the same, the latest interims showed pre-tax profits of £239,322 against £121,065 for the previous comparable period, giving basic earnings of 0.10 per share.
So, Peninsular is proving itself to be a growing business with significant future potential. All the indications are that there is a lot more good news to come.|
|biggest bill: I does look as if some news might be imminent. There has been a 40% rise in the share price in the last 2 weeks. Perhaps even some good news for a change?|
|greg the grinch: what are the odds of a placing?
Im going to hold....
Aleoap... as you say if this goes right and even the management are not sure of that lol then this share price will move much higher.|
|aleoap: I'm also disappointed with management and the continued delays Horndean, however I think the share price recently is more reflective of the current market sentiment. Any sane person would expect the gold sector to be higher as the gold metal price goes higher but the exact opposite is happening in the majority of mining stocks.
Jan 2011 Gold Price $1370
August 2011 Gold Price $1715
+ nearly $350 per oz. In approx 6 months.
Just based on the difference this makes to PGL on production profit, from memory I think cash cost has been around $614 per oz, and approx monthly production of say 1400 oz.
Jan 2011 PGL $1370 - $614 = $756. $756 x 1400 = $1,058,400 profit on sales per month.
August 2011 PGL $1715 - $614 = $1101. $1101 x 1400 = $1,541,400 profit on sales per month.
So since the start of the year based on 1400 oz per month production approx an extra $500,000 per month or $6,000,000 per year additional profit on sales. Now when you start to look at the figures based on approx 3000 oz per month (this is what I am expecting Q1 next year as a minimum) it really does look quite tasty.
I know the above is a very simplistic view of things and cash cost can vary etc however it does show the impact of the rising gold price. On a market cap of less than £30m how can this not look cheap after Q1 figures start coming in.
To be honest, I am starting to look at other gold shares I had previously discounted due to risk and potentially setting up a total punt fund. CRND at less than 10m mcap although high risk if they can turn things around with 36m oz of gold? GMA at 3m mcap? NYO 7p? MARL 14p?
The more this goes on the more it feels like this is engineered in some way to stop the gold investment case getting out of control. I don't believe there is enough power at the top to suppress the gold price but hey keeping the miners under control is no problem. With gold gapping up over the weekend and in future gap ups will more than likely be the norm, at what point will possible suppression of the miners no longer be possible. With PGL today it is plain to see that with minimal AT selling volume the share price can be dragged down over 14% and where updates/news are bordering on non existent there is no buying power to stop this.
MML is the same level it was in Jan 2011, although their cash cost is less than $200 per oz I believe.
Simply put, if you have strong beliefs as I do that gold will continue to rise against weakening currencies, then current prices are a godsend across the sector. With a diversified portfolio purchased at current prices stretching across a mixed basket of risks/countries etc it is hard to see one not doing fantastically well over the long term.
The waiting is the hard part..|
|horndean eagle: PGL share price is a reflection on management and their performance so far. Deeply disappointing. Don't fancy their chances at getting another placing away if thats what they had in mind.|
|aleoap: Well looks like sporazene was right with 29/30p being the target. From what I gather the decline in share price, the statement from Andrew Kam in the interim results - 'I look forward to announcing the commencement of commissioning at Raub', and no response from the company to my query over whether the expansion has been completed tell me, in my opinion, that commissioning has not commenced yet.
Of course I could be pleasantly surprised..|
|eric76: This from march covers cash costs etc but not the upgrading of plant they've recently announced. The RM60 Million in profits at $960 an oz comes out at around £10 million UKP so the numbers should please just be good to have news on drilling Raub too.
Golden strike for Peninsular Gold
Monday, 02 March 2009 16:08
While the world is worrying about how deep the recession will be, gold miner Datuk Seri Andrew Kam seems to have every reason to smile as gold price continues to climb even as the prices of other commodities have collapsed.
On Feb 18, Kam, the chairman and major shareholder of Peninsular Gold Ltd (PGL) that owns a gold mine in Raub, Pahang, saw the company's first gold dore (bar of semi-purified gold) being produced.
"It is a major milestone in the development of PGL as it marks the transition from an explorer of gold to being a producer," says Kam, who is bullish on gold. He believes it is good alternative for wealth preservation, thus the resilient demand.
There are more reasons for Kam to celebrate. His company did not hedge its gold production, hence, the gold it produces will be able to ride the rising price trend.
Also, PGL's wholly-owned unit Raub Australian Gold Mining Sdn Bhd (RAGM), managed to obtain a RM54 million loan from Bank Kerjasama Rakyat Malaysia Bhd to finance the company's repurchase of its US$20 million (RM73 million) convertible loan notes. In addition, the bank has granted a further RM15 million for the company's working capital.
"We managed to convince the creditors to agree to our repurchase exercise. We only pay US$17 million, together with an issue of 10 million warrants to buy back the US$20 million loan notes. It is a good deal for us," says Kam.
Just two days after PGL announced the production of its first gold dore, the price of the precious metal marched back to US$1,000 per ounce, a historical high recorded in March 2008. It has now retreated to the US$950-level.
In 4Q2008, gold price slid to a low of US$712 per ounce in November after the bursting of the commodity bubble worldwide. But it regained its lustre as the world economic outlook got gloomier. Investors sought shelter in gold amid worries over the deepening of the global economic crisis, which may result in a prolonged recession.
According to the World Gold Council, the biggest source of growth in demand for gold in the fourth quarter last year was investment. The most striking trend in 2008 was the reawakening of investor interest in the holding of physical gold. Demand for bars and coins rose 87% over the year, with shortages reported in many parts of the world.
The most dramatic surge was in Europe, where bar and coin demand increased from just nine tonnes in 4Q2007 to 114 tonnes a year later, a 1,170% increase, the World Gold Council says in its latest report.
Kam's gold rush may have just remained a dream if the price of the precious metal had remained low. "The high gold price has made it commercially viable for us to adopt advanced technologies to process the tailings that were left behind and still contain gold," he explains.
The announcement of the first gold pour has lifted the share price of PGL, which is listed on London's Alternative Investment Market (AIM). PGL, which incurred a net loss of £1.4 million (RM7.4 million) for FY2008 ended June 30, rallied to an eight-month high of 46 pence, more than triple the recent low of 14 pence. The counter closed at 45.3 pence last Wednesday.
"Shareholders (of Peninsular Gold) can expect to reap the fruits now. There will be profitable years ahead," he tells The Edge.
Based on an expected annual output of 25,000 ounces of gold, Kam says PGL is anticipated to earn a yearly net profit of RM60 million on revenue of RM80 million at a gold price of US$960 an ounce.
"If we want to increase revenue, what we could do is to expand our capacity in order to drill and produce more (gold)," he says.
Turning sand into gold
RAGM currently has proven reserve of about 202,000 ounces of gold in 8.6 million tonnes of tailings in Raub - a historic gold mining town. It has constructed a carbon-in-leach plant to restart the gold production.
"We are turning sand into gold," says Kam. His plan is that the plant initially produces gold from the tailings left by the historic Raub Australian Gold Mines, which had mined over one million ounces of gold before it was shut down in 1961. Later, the plant will process gold from the proven reserves discovered in nearby areas.
Kam, who spent his childhood in Raub, has faith that there are still ample gold reserves awaiting exploration in the central belt of the peninsula and soon, Malaysia will again become a well-known gold producer like in ancient times.
PGL's average production cost is in the range of US$250 to US$280 per ounce while sales are at above US$900 per ounce.
"Our cost in Malaysia is much lower than other gold-producing countries. This is partly because of low labour costs and rebates on power supply, while PGL enjoys certain incentives from its pioneer status," Kam says.
He adds that he is appreciative of the Pahang government in helping make the gold production project, located in the Eastern Economic Corridor, viable.
The average production cost among the world's top 20 gold producers is between US$400 and US$440 per ounce. Some producers may incur higher costs due to a harsh mining environment.
Kam is aware of the low-cost advantage. "We are still making good profits - even if the gold price falls substantially from the peak. But I'm bullish on the gold price trend," he says.
This article appeared in the Corporate page, The Edge Malaysia issue 744, March 2-8, 2009.|
Peninsular Gold share price data is direct from the London Stock Exchange